Actinoid Group Industry Updates

Asia's Century

The future of Asia is no longer confined to China. In the coming decades, Asian economies will shift from participating in global trade and innovation flows to defining their shape and direction.

Currently, 44 percent of international students are Asian, 119 of the world's 235 unicorns are Asian, and Asia will account for 50 percent of consumer consumption (consumer demand) growth over the next decade. This is more than just a Chinese storey. It is about India, which is already the world's third-largest economy by purchasing power parity (PPP).

The extent to which the world's gravitational centre is shifting toward Asia The region's global trade, capital, people, knowledge, transportation, culture, and resources share is increasing. Only waste flows in the opposite direction of the other seven types of global cross-border flows, owing to China and other Asian countries' decision to reduce garbage imports from developed countries.

Asia now accounts for roughly one-third of global goods trade, up from roughly a quarter ten years ago. Over roughly the same time period, its share of global airline travellers increased from 33% to 40%, and its share of capital flows increased from 13% to 23% pre-Covid-19 times.

Asia now accounts for almost one-third of global goods trade, up from approximately a quarter ten years ago. Over the same time period, its percentage of global airline travellers climbed from 33% to 40%, while its share of capital flows increased from 13% to 23%.

The growth performance of Asian economies over the last half-century has been truly remarkable. Asia's developing economies (excluding Japan and Israel) had a total GDP of $1.42 trillion in 1970, accounting for 10.9 percent of that of Europe and Northern America (the two regions where most developed economies are located). In 2019, it had risen to 63.7 percent.

Asia's manufacturing catch-up is even more impressive. In 1970, developing Asia's manufacturing added value was a mere fraction of that of Europe and North America (6.7 percent ). Since 2015, it has surpassed the latter.

According to UNCTAD's 2016 Trade and Development Report, dynamic manufacturing is a significant factor in long-term economic development because it can create jobs, raise income, drive technological progress, and generate multiple virtuous economic linkages. Yes, we have reason to believe that robust growth will continue in this region.

However, economic growth alone does not support the claim of a “Asian century.” Despite their declining share of global output, advanced economies have solidified their position in global governance. According to one study, its share of international merchandise trade transactions as an invoicing currency is approximately 3.1 to 4.7 times the US share of global trade volume.
Developing members of the World Trade Organization are defending their established rights under the World Trade Organization's special and differentiated treatment provisions, while development gaps in trading rules have gone unnoticed.

Overall, the economic success of Asia has not resulted in more inclusive global governance. So, what grounds do we have to believe that the “Asian century” is on its way?

Fortunately, the world continues to evolve. Asian economies may now realise it is time to make a difference. The BRICS summit will be held in India and China in 2021 and 2022, respectively. Indonesia and India will take over the G20 presidency in 2022 and 2023, respectively. Thailand will host the APEC meeting in 2022.